Seems like the conversation with Yellen yesterday turned to finance, and the possibility that in some future reality, borrowing money might have some expenses associated with it like paying it back with interest. One would have to be crazy not to panic, at least briefly.
SPY has been building a flimsy looking support line at 417 and Yellen’s commentary was the straw that broke the camel’s back. QQQ almost touched the 54 day SMA.
There were probably a lot of stop orders at and just below SPY 417 and 330 for QQQ. It is virtually impossible to place stop orders in a good spot. The dip flushed out weak speculators.
SPY and QQQ are both at or slightly north of the line this morning. The action above 417 has been far from impressive, so seeing significant strength here would be a pleasant surprise.